Which of the Following Statements Is NOT True

Multiple Choice

Which of the following statements is NOT true?

A) The purchase of government bonds from the public increases the money supply.
B) Monetary policy in the euro area is set by the Governing Council of the European Central Bank.
C) When the central bank sells government bonds to the public, the money supply decreases.
D) Monetary policy in the UK is set by the Chancellor of the Exchequer in consultation with the Bank of England.